Contract templates · Business Setup & Ownership
A general partnership forms the moment two people run a business together for profit, whether or not anything is signed. Without an agreement, default partnership law decides how profits split and what happens when one partner wants out.
A general partnership agreement sets out each partner's capital contribution, share of profits and losses, management rights and the process for a partner joining, leaving or dying. It replaces the default rules that apply to partnerships with no written agreement.
When you need one
- Starting a business with a partner without forming a company
- Formalising an existing informal partnership
Key clauses in a General Partnership Agreement
These are the clauses the template includes, and what each one does for you.
Capital contributions
Records what each partner puts in, whether cash, equipment or work, and whether more can be called for later.
Profit and loss allocation
Fixes how profit and loss are shared, which does not have to match capital contributed.
Management and voting
Says who manages day-to-day work and which decisions need all partners to agree.
Partner drawings
Sets how and when partners can take money out of the business before profits are finalised.
Admission and withdrawal of partners
Explains how new partners are admitted and how an existing partner can retire or withdraw.
Buy-out on exit or death
Gives the remaining partners a way to buy out a departing or deceased partner's share, including how it is valued.
Dissolution
Lists the events that end the partnership and how assets are divided when it is wound up.
Common mistakes to avoid
- Assuming profits split by contribution when the law in many places presumes equal shares.
- Forgetting that in a general partnership each partner can be personally liable for the business's debts, which is a reason some partners prefer an LLC.
- Having no valuation method for a buy-out, so every exit becomes a negotiation.
How to use the template
Download the Word file
Buy the General Partnership Agreement template on My Contract Lawyer and download the editable .docx straight after checkout.
Fill in the brackets
Add names, dates, fees, scope and governing law, and delete optional clauses that do not apply to your deal.
Check it against local law
Rules differ between US states, the UK and EU countries, especially for employment, consumer and property contracts. Have a lawyer review high-value or unusual deals.
Sign and keep a copy
Sign on paper or with any e-signature tool, and store the final version where both sides can find it.
Get the General Partnership Agreement template
Lawyer-drafted and ready to edit in Word, Google Docs or Pages. One-time payment of $29, no subscription, instant download from My Contract Lawyer.
Frequently asked questions
Is a partnership the same as an LLC?
No. A general partnership usually gives partners no liability shield, while an LLC separates the business's debts from the members' personal assets.
Do partnerships need to be registered?
It depends on the state or country. Many places require a business name registration and tax registration even when no formal filing creates the partnership.
Can partners share profits unequally?
Yes. The agreement can set any split, for example 60/40, or a preferred return to the partner who funded the business.
Related contract templates
Templates are a starting point, not legal advice, and using one does not create a lawyer-client relationship. Contract law differs between countries and states, so check the finished document against local law.